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Avio: The Next Growth Chapter SEPTEMBER 2025 Not for release, publication or distribution in the United States, Australia, Canada or Japan
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2 Disclaimer NOT FOR DISTRIBUTION, RELEASE OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION, RELEASE OR PUBLICATION WOULD BE UNLAWFUL. OTHER RESTRICTIONS ARE APPLICABLE. This presentation (‘‘Presentation”) has been prepared by Avio S.p.A. (“Avio” or the “Company”). This Presentation might contain certain forward-looking statements (e.g., statements including terms like "believe", "assume", "expect", "forecast", "project", "may", "could", "might", "will" or similar expressions) that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on Avio’s current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Avio to control or estimate. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. Avio does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. Any reference to past performance or trends or activities of Avio shall not be taken as a representation or indication that such performance, trends or activities will continue in the future. 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Any investment decision should therefore be made solely on the basis of Final Offering Documents, when published. IMPORTANT NOTICE These materials and the information contained herein may not be published, distributed or transmitted, directly or indirectly, in whole or in part, in the United States, Canada, Australia or Japan. These materials and the information contained herein do not constitute or include an invitation to offer or an offer of securities for sale or a solicitation of an offer to purchase securities (the “Securities”) of Avio S.p.A. (the “Company”) in the United States or any other jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. The Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). 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In the United Kingdom, this presentation is being distributed to and is directed only at qualified investors, within the meaning under Article 2(e) of Regulation (EU) 2017/1129 as it forms part of English law by virtue of the European Union (Withdrawal) Act 2018 as amended, who are also (i) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities, or other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order, (all such persons together being referred to as “relevant persons”). The Securities are only available in the United Kingdom to, and any invitation, offer or agreement to purchase or otherwise acquire the Securities will be engaged in only with, the relevant persons. Any person in the United Kingdom that is not a relevant person should not act or rely on this presentation or any of its contents. Not for release, publication or distribution in the United States, Australia, Canada or Japan
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3 Who we are Not for release, publication or distribution in the United States, Australia, Canada or Japan Marco De Luca Chief Strategy Officer, Avio Nevio Quattrin Head of Investor Relations, Avio Giulio Ranzo CEO and General Manager, Avio Joined Avio in 2011 CEO since 2015 VADM (Ret.) James Syring CEO, Avio USA Former Director MDA Joined Avio USA in 2022 Joined Avio in 2024 Joined Avio in 2024 1st day of trading April 10th, 2017
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4 Industry leading player in EU and US space launch and defense propulsion 60+ years of experience, proprietary technology and proven manufacturing Addressing the evolving needs of US and EU space & defense systems Long-term relationships with sovereign and blue-chip customers Not for release, publication or distribution in the United States, Australia, Canada or Japan Unique opportunity in the next space & defense super-cycle: Avio positioned where demand far exceeds current supply US Govt Armed Forces 4
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5 Vega Launcher Operator Launcher system integration SRM manufacturing Flight operations Ariane launcher propulsion partner Strap-on boosters and LOX turbopumps sole source Air defense propulsion supplier SRMs for air defense missiles Photo credits: MBDA websiteSRM: Solid Rocket Motors 1. Mid-term refers to the period 2029-2031 Not for release, publication or distribution in the United States, Australia, Canada or Japan Avio today: focused on space launch & defense propulsion growth Vega flight rate (#/year) # SRM for defense appl. (tons/year) # Ariane boosters prod. rate 6 3 Ca.35 14 >500 70 ~2x Growth ~2.5x Growth ~7x Growth 2025 Mid- Term1 2025 Mid- Term1 2025 Mid- Term1 ~250 Launches to date 27 Launches to date >100k SRMs produced to date
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6 DRAFT State-of-the-art technologies in space launch & defense propulsion Solid propulsion 60 years of experience SRMs for tactical/strategic applications 0-160 tons of propellant Altitude Not for release, publication or distribution in the United States, Australia, Canada or Japan 0 – 80 Km 80 – 300 Km >400 Km 6 0-500 tons thrust Cryogenic propulsion 10 years of experience Innovative LOX-CH technology Advanced upper stage propulsion 10-60 tons thrust Orbital propulsion < 10 years of experience Orbital transfers Re-entry into atmosphere 0.2-1 tons thrust
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7 Current industrial footprint Avio SpA,Colleferro Headquarters, production plants, integration, testing Sardinia Test Facilities SRMs, Liquid Engines Avio Guyane, French Guyana Avio USA, Arlington VA SRMs Industrial JVs, French Guyana US Manufacturing Footprint Identified Not for release, publication or distribution in the United States, Australia, Canada or Japan Europropulsion Regulus Integration building Launchpad ✓ Operating under Special Security Agreement
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8 8Sources: ESA, CNES, Arianespace, French Government, MBDA website Recent 2025 key facts Ariane 6Vega C Space launch New tech developments Defense US Govt Armed Force Growing flight rates New customers P160C / MR10 motors Not for release, publication or distribution in the United States, Australia, Canada or Japan
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9 Space launch: rapidly growing demand to orbit new spacecraft Sources: Novaspace, Companies reports, public information, BCG Analysis 1 6% 4% 14% Global Launch Market (payload tons / year) CAGR ’25-’35 11% Not for release, publication or distribution in the United States, Australia, Canada or Japan Captive programs 250 650 950 800 550 700 250 1,550 2025 1,050 2,000 2030 1,200 2,300 2035 Space Exploration Earth Observation / Science / Other sats SatCom & Nav constellations Starlink 2,800 4,200 5,200 +6% up to 2.5 ton 6-20 ton Key customers EU launchers focus
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10 Defense: new growth prospects via entry into US market US & EU Missile Propulsion SRM Market (propellant k tons / year) Note: European market excluding non-addressable Sources: BCG analysis on Janes Database, DoD budget FY2025 Weapons, public information 2 CAGR ’25-’35 9.8 0.3 3.3 2025 14.1 0.4 5.0 2030 17.5 0.5 6.3 2035 13.4 19.5 24.3 +6% 7% 5% Strategic Missiles Tactical Missiles Europe Tactical Missiles US 6% Not for release, publication or distribution in the United States, Australia, Canada or Japan
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11 Becoming a key supplier in heavy supply & demand imbalance Sources: BCG analysis on Janes Database, DoD budget FY2025 Weapons, public information Not for release, publication or distribution in the United States, Australia, Canada or Japan 3 2025 2026 2027 2028 2029 2030 6.1 3.6 6.6 3.8 6.9 4.0 7.0 4.3 6.9 4.9 6.9 5.4 US + Europe supply US + Europe demand Current Estimate of US & EU Missile Propulsion Supply and Demand (propellant k tons / year) Average unmet demand: 2,400 tons/year
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12 A new plant in the US to capture the full market potential Key Highlights Operations Key Contracts Engineering and production Greenfield SRM facility Merchant supplier for OEMs / Armed Forces Site identified Preliminary design done Procurement started >3 Customers 10+ Programs 2028 Start of Production in US Up to 700 Tons of propellant annual production International Defense Customer Production SiteCustomer Contract Overview New agreement for manufacturing, assembly, and testing Under contract to achieve qualification of Mk 104 SRM In discussion on multiple programs to become a second- source supplier Letter of Intent signed with an international solid rocket motor manufacturer US Gov’t Armed Forces Rendering of the plant Not for release, publication or distribution in the United States, Australia, Canada or Japan US Prime B
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13 Avio’s plan: long-term revenue evolution Defense upside✓ 2025 2035 Revenues By activity Revenues By segment Revenues By geography Production yields✓ Diversification✓ Mid-Term1 >€1.0bn€450 – 480m Revenue Target: 20% 60% 20%Space Propulsion Launch Systems Defense Propulsion 50% 50%Production Development Not for release, publication or distribution in the United States, Australia, Canada or Japan >95% <5% Europe US >€1.2bn >10% CAGR 1: Mid-term refers to the period 2029-2031 2: “Launch systems” also includes Tech Dev Projects (Next Gen EU) 2
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14 Long-term EBITDA evolution EBITDA Growth components 2025 Volume Growth Operating Leverage Segment Mix 2035 €27-33m Europe US Group EBITDA Development 2025 Not for release, publication or distribution in the United States, Australia, Canada or Japan €27-33m 2035Mid-term1 High-Teens CAGR 2 >20% CAGR 14 US plant investment Europe US Group Note: EBITDA refers to EBITDA Reported 1: Mid-term refers to the period 2029-2031; 2. 80%+ of EBITDA growth expected beyond 2028 Illustrative
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15 Investment plan to support long term strategic growth 400 Equity (Rights Issue) 150-200 Debt-like / Infrastructure Lease Total 150-200 US Plant Land & Infrastructures 300-350 US Operations, Machinery, Equipment 50-100 Upgrades to EU Assets Capacity TBD Vertical Integration 600+ Government Grants TBD Sources and uses (€m) Not for release, publication or distribution in the United States, Australia, Canada or Japan 15 2025 2026 2027 2028 2029 2030 Growth plan Capex Maintenance Capex Indicative Capex cash-out Timeline
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16 Potential for further upside opportunity beyond plan ✓ US plant: modular approach to enable long-term scalability ✓ More vertical integration in critical supplies / technologies Additional sources Additional uses Issuance of up to 10% of the share capital on a non-pre-emptive basis Further Government Grants Additional lending/funding sources Larger US Plant Capacity / Capability More vertical integration Further Increase of European capacity Not for release, publication or distribution in the United States, Australia, Canada or Japan 16 Drivers for upside: ▪ More defense programs ▪ Higher than anticipated demand volumes ▪ Larger market shares than planned ▪ Entry in additional market segments
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17 Backlog evolution provides visibility on future revenue growth Not for release, publication or distribution in the United States, Australia, Canada or Japan “Launch systems” also includes Tech Dev Projects (Next Gen EU) CAGR illustratively calculated assuming mid-point of 2025 Guidance 669 736 877 724 970 114 139 155 176 250 439 2019 2020 2021 2022 2023 2024 2025 Guidance 1.014 1.359 1.724 1.130 +17% Launch systems Space propulsion Defense propulsion 1.700 – 1.800 Net order backlog (€m) [#] % on backlog 9% 66% 25%
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18 Avio: a unique opportunity to invest in global space & defense 1 Focus on high supply-demand imbalanced segments 2 Proprietary and innovative propulsion technologies 3 Decades of proven experience and successful deliveries 4 Attractive earnings growth profile, with potential upside 5 Leadership team aligned as investors since 2017 Not for release, publication or distribution in the United States, Australia, Canada or Japan
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THANK YOU Not for release, publication or distribution in the United States, Australia, Canada or Japan
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APPENDIX Not for release, publication or distribution in the United States, Australia, Canada or Japan
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21 Photo credits: ESA. CAMM-ER and ASTER 30 are products of MBDA Group SRM: Solid Rocket Motor (1) provided through the subsidiary Europropulsion ; (2) Mid-term refers to the period 2029-2031 Overview of Avio main products Space Defense VEGA C ZEFIRO 9 SRM (3rd stage) ZEFIRO 40 SRM (2nd stage) P120C(1) SRM (1st stage) Fairing AVUM + (4th stage) Vega flight rate (#/year) ARIANE 6 (6.2) Liquid oxygen turbopumps for the upper stage Vinci engine P120C SRM(1) Liquid oxygen turbopumps for the core stage Vulcain2.1 engine CAMM-ER ASTER 30 Solid-propellant rocket motor Solid-propellant rocket motor Standard Missile # SRM for defense appl. (tons/year) Mk104 Solid- propellant rocket motor # Ariane boosters prod. rate Common first stage Not for release, publication or distribution in the United States, Australia, Canada or Japan Ca.35 142025 Mid- Term2 >500 702025 Mid- Term26 32025 Mid- Term2
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22 Avio’s 60 years track record in space and defense propulsion HAWK MILAN 23,000+ SRMs ASPIDE 4,000+ SRMs ASTER 30 2,200+ Boosters 1980’s 1990’s 2000’s1960’s 2024 2010’s CAMM-ER Series Production in 2024 MARTE 300 SRMs MLRS 100,000+ SRMs Current LegacyPhoto credits: ESA, MBDA, publicly available infoSRM: Solid Rocket Motor Ariane 1-3 Separation motors Ariane 4 9 tons boosters Ariane 5 240 tons boosters Vega Launch system Vega C improved performance Ariane 6 280/560 tons boosters DEFENSE SPACE Not for release, publication or distribution in the United States, Australia, Canada or Japan
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23 $350bn $482bn ~$1.3tn 2020 2025 2035E Defense spend growing towards 5%(1) of GDP Record spending in defense markets Sources: ISPRI, NATO Speech on “Building a better NATO” - June 2025, NATO report titled “Defence Expenditure of NATO Countries (2014-2025)” and press releases. (1) At the 2025 Munich Security Conference, NATO agreed to raise its defence spending target for all allies to 5% of GDP by 2035E up from the previous 2% target. (2) Excludes US and Canada, includes UK and Turkey. (3) Assumes 2024A – 2035E GDP CAGR of 1% across all NATO members. Not for release, publication or distribution in the United States, Australia, Canada or Japan European NATO Members(2) $771bn $920bn ~$1.6tn 2020 2025 2035 ~2% of total GDP ~5%(1) of total GDP(3) ~3% of total GDP ~5%(1) of total GDP(3)United States Mobilizes €800bn in European defense spending✓ Readiness 2030 (previously ReArm Europe) Long-Term Growth in Defense Funding Significant portion earmarked to air and missile defense✓ Strong “Buy European” mandate✓ Enables $150bn of additional US defense spending, on top of Budget✓ Reconciliation Bill 2025 Allocates $25bn to the “Golden Dome for America” project✓ Further $25bn designed to address higher munitions supply and SRM industrial base✓ 2
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24 Defense: €1.7B TAM1 in US SRM Market Missile Propulsion SRM Market (€B) 1. TAM = Total Addressable Market; Note: European market excluding non-addressable Sources: BCG analysis on Janes Database, DoD budget FY2025 Weapons, public information CAGR ’25-’35 2.9 0.2 1.7 3.9 0.3 3.3 2030 5.5 0.4 4.5 2035 4.7 7.5 10.4 2025 +8% 10% 9% Strategic Missiles Tactical Missiles Europe Tactical Missiles US 7% Not for release, publication or distribution in the United States, Australia, Canada or Japan 2
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25 Recently announced US customer agreements rapidly transitioning towards production Not for release, publication or distribution in the United States, Australia, Canada or Japan US Government Armed Forces Partnership for development and fast-prototyping of SRMs Manufacturing, Assembly, Integration and Testing agreement Contracts in US announced in 2024 are rapidly progressing from development to production 2024 2025 By 2028 Production Other primes PDR(1) of critical SRMs for defense applications Funding secured through the CDR(2) phase and Long-Lead for qualification … US … to come (1) Preliminary Design Review (2) Critical Design Review Italy
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26 Revenues increased by 30% compared to 1H 2024 [#] % on net revenues 18% 64% Figures in €m 17% [#] % on net revenues 114 150 33 4231 40 3 1H 2024 3 1H 2025 181 235+30% Launch systems Space propulsion Defense propulsion Other 18% 63% 17% 94 139 85 93 1H 2024 1H 2025 181 235+30% Production Development 47% 52% 40% 59% Significant increase in revenues mainly for Vega C production driven by cadence increase following return to flight, production of motors P120 for Ariane 6 as well as defense propulsion activities Not for release, publication or distribution in the United States, Australia, Canada or Japan “Launch systems” also includes Tech Dev Projects (Next Gen EU) Net revenues | Breakdown by Line of Business Net revenues | Breakdown by Activity
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27 1H 2024 Actual (€m) 1H 2025 Actual (€m) Delta (€m) Delta (%) NET REVENUES 180,6 234,9 54,3 30,0% EBITDA REPORTED 8,1 10,0 1,9 23,7% % on net revenues 4,5% 4,3% EBITDA ADJUSTED 8,3 11,4 3,1 36,7% % on net revenues 4,6% 4,8% EBIT REPORTED (0,4) 0,0 0,4 n.m. % on net revenues -0,2% 0,0% EBIT ADJUSTED (0,1) 1,4 1,6 n.m. % on net revenues -0,1% 0,6% PROFIT BEFORE TAX (0,5) 0,4 0,9 n.m. % on net revenues -0,3% 0,2% NET RESULT (1,8) (0,2) 1,6 n.m. % on net revenues -1,0% -0,1% 1H 2025 results vs. 1H 2024 AVIO Group | Main financials Main comments 1. 1. N/R 0,2 (1) 2. 2. 3. 4. 4. EBITDA increase driven by higher revenues, partially offset by higher energy costs EBIT increase, despite higher depreciations mainly for IT new technologies (AI) 3. Higher Non-recurring costs for certain personnel severance N/R 1,4 (1) Significant increase in revenues (+30%) mainly thanks to Vega C production, Ariane 6 P120 motors and Defense propulsion activities (1) Costs for exploration of new potential business in the US reported as recurring in both half -years (2) Net of pass -through Not for release, publication or distribution in the United States, Australia, Canada or Japan 5. 5. Lower taxes mainly for certain higher non-tax deductible costs in 2024 Profit before tax increase higher than EBIT thanks to interest income on average cash available higher than 1H 2024 invested in time deposit 6. 6. (2)
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28 AVIO Group | Sources and uses Main comments 1. Figures in €m • Working capital structurally negative thanks to cash advances from order intakes • Mainly for capex for IT improvement projects and new technologies (A.I.), net of depreciation • Net cash position higher than typical seasonality trend for certain delays, with timing effect, in flow-down of cash advances to suppliers and sub-contractors, as well as for about 10 million from conversion of Space Holding sponsor warrants which increased Equity 1. 2. 2. 3. 3. 1H 2025 results vs 2024 | Sources and uses 31 DEC 2024 Actual (€m) 30 JUN 2025 Actual (€m) WORKING CAPITAL (213) (198) DEFERRED TAX ASSETS 87,5 87,6 PROVISIONS (51,8) (44,4) GOODWILL AND OTHER INTANGIBLE 86,1 84,5 FIXED ASSETS 311,8 314,3 FINANCIAL RECEIVABLES 2,0 2,0 NET INVESTED CAPITAL 222,8 245,7 NET CASH POSITION 90,1 75,3 EQUITY (312,9) (321,0) TOTAL SOURCES (222,8) (245,7) Not for release, publication or distribution in the United States, Australia, Canada or Japan (1) Includes Other non -current assets and Other non -current liabilities (2) Includes provisions for risk and charges and provisions for employee benefits (1) (2)
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29 Quarterly evolution of EBITDA and Net Cash Position Figures in €m EBITDA Reported | Quarterly evolution Net cash position | Quarterly evolution 3M 6M 9M FY 1.3 1.6 4.0 5.2 8.1 10.0 8.7 12.1 20.5 25.8 2023 2024 2025 3M 6M 9M FY -0.1 57.4 9.6 59.0 102.2 21.5 75.3 47.9 76.1 90.1 Not for release, publication or distribution in the United States, Australia, Canada or Japan
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30 FY 2025 Guidance REVENUES BACKLOG EBITDA REPORTED (1) NET INCOME €m 1.700 €m 1.800 €m 450 €m 480 €m 27 €m 33 €m 7 €m 10 (1) Implying an EBITDA Adjusted ranging from €30m to €36m assuming €3m as non recurring costs ▪ New orders from defense propulsion business ▪ Growth in defense propulsion and Vega activities ▪ AVIO USA accounted in general expenses ▪ Increased taxes Not for release, publication or distribution in the United States, Australia, Canada or Japan
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CONTACTS Investor.relations@avio.com The information contained in this document is Avio S.p.A. proprietary and is disclosed in confidence. It is the property of Avio S.p.A. and shall not be used, disclosed to others or reproduced, without the express written consent of Avio S.p.A. Not for release, publication or distribution in the United States, Australia, Canada or Japan